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Note 4 - Short-Term Related Party Convertible Notes Payable
3 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
Short-Term Related Party Convertible Notes Payable

NOTE 4 — Short-Term Related Party Convertible Notes Payable

 

The Company’s Subordinated Convertible Notes of $752,625 matured on September 4, 2017. At the option of the note holders, note payable principal and accrued interest totaling $1,216,109 was converted into 972,884 shares of common stock at a conversion rate of $1.25 per share. The conversion reduces current liabilities and increases stockholders’ equity by $1,216,109. These 4-year notes were originally issued on September 4, 2013 to officers and directors of the company and converted into common stock at maturity pursuant to the terms of the notes. Accrued interest for all convertible notes was $411,517 at March 31, 2017 and was included in Accounts Payable and Accrued Expenses. Interest expense for the three months ended March 31, 2017 was $28,709.